A firm plans a capital budget of $4,000,000 next year with net income expected to be $3,500,000. The company wants to maintain a target capital structure of 30% debt and 70% equity. If the company follows the residual dividend policy, how much in dividends, if any, will it pay? Select one: O a. $700 O b. $2,800 O c. $4,000 O d. $1,200 Oe. $2,450 A company follows a strict residual dividend policy. It has a capital budget of $3,000,000 and a target capital structure that consists of 30% debt and 70% equity. Net income is forecast to be $3,500,000. Calculate the expected dividend payout ratio. Select one: O a. 40.00% O b. 60.00% O c. 18.33% O d. 74.29%